Will Genting Malaysia secure a full-scale New York casino licence amid intense competition?

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Genting Malaysia Faces Stiff Competition for New York Casino Licence

Fitch Ratings has indicated that Genting New York LLC, a subsidiary of Genting Malaysia Bhd, is likely to encounter significant competition in its pursuit of a full-scale casino licence in New York. The credit rating agency has not incorporated the outcome of this bidding process into Genting's financial forecasts due to the substantial uncertainty surrounding the award. The process for granting three downstate licences in New York is anticipated to conclude in the first half of 2024, a timeline that is expected to be marked by intense rivalry among various operators.
Potential for Intense Bidding Process

The competition for the three downstate New York casino licences is projected to be fierce. Fitch Ratings has highlighted this intense competition, suggesting that the outcome remains highly uncertain. Consequently, the credit rating agency has opted not to include any potential revenue from this licence in its current forecasts for Genting. The timeline for the award of these licences is estimated to fall within the first half of 2024.
Uncertainty Surrounding Licence Award

Due to the significant degree of uncertainty associated with the New York casino licence bid, Fitch Ratings has not factored this potential award into its financial projections for Genting. This cautious approach reflects the competitive landscape and the unpredictable nature of the licensing process itself. Therefore, any assessment of Genting's future financial performance will not currently account for the successful acquisition of this licence.
Broader Financial Outlook for Genting

Beyond the New York bid, Fitch Ratings has provided a broader outlook for Genting Bhd. The agency expects the company's earnings to reach between 85% and 95% of its 2019 levels within the current year. Furthermore, a recovery to pre-pandemic financial performance levels is anticipated in the second half of the following year. This optimistic projection is partly attributed to the rebound in visitor numbers at Genting's key Malaysian and Singaporean assets, which collectively account for over 60% of its total earnings before interest, taxes, depreciation, and amortisation (Ebitda).

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Will Genting Malaysia secure a full-scale New York casino licence amid intense competition?

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